(Bloomberg) byÂ Lynn Doan – Hedge funds raised bearish wagers on oil to an all-time high, speculating crude has further to fall as the supply glut keeps swelling. Money managers increased short positions in West Texas Intermediate crude by 17 percent in the seven days ended Feb. 24, U.S. Commodity Futures Trading Commission data show. Net-long positions slid to the lowest in seven weeks. Stockpiles in the U.S. have risen for seven consecutive weeks to a record 434.1 million barrels. Domestic production is continually topping weekly records, reaching 9.29 million barrels a day during the report period, while an unprecedented decline in oil drilling rigs is showing signs of slowing. Â âThis tidal wave of crude oil is just too overwhelming,â John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone Feb. 27. âThereâs no end in sight.â West Texas Intermediate crude, the U.S. benchmark, tumbled $4.25 to $49.28 a barrel on the New York Mercantile Exchange in the week covered by the report. The oil has lost more than half its value since reaching last yearâs high in June. Futures fell 17 cents, or 0.3 percent, to settle at $49.59 a … continue reading
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Source: CTRM Center